The Tennessee Bureau of Workers’ Compensation requires that you carry workers’ compensation insurance if you employ five or more people in your business. And if your business is in construction or a similar trade, you have to carry this coverage no matter how many employees you have.
Workplace injuries such as falls, breaks and cuts can happen to anyone. Even if your business is not required to carry workers’ compensation, you may benefit from the safety net it can provide for medical expenses and lost wages.
For example, a caterer injured on the job could face an emergency trip to the hospital, physical therapy, medications and lost income while she recovers.
A workers’ comp policy with business owner’s coverage could help cover her medical expenses and lost wages until she’s healthy enough to book new business again.
If you purchase Tennessee workers’ compensation, you and your employees could receive financial help after a workplace injury for:
Additionally, employees who accept workers’ compensation benefits typically can’t sue their employer to pay injury-related expenses.
Proof of coverage can also help you gain work with some clients. Many businesses require all contractors to carry basic business insurance, including workers’ compensation.
Workers’ comp coverage might also be required for a professional license.
For example, to meet the general contractor license requirements in Tennessee, contractors must have general liability insurance and workers’ compensation insurance unless they can prove they’re exempt.
After suffering injury or illness on the job, employees may be eligible for benefits if:
Tennessee workers’ compensation settlements are either:
|Temporary disability, which can be:
Temporary partial disability (TPB), when the worker is placed on “light duty” or other restricted work while healing.
Temporary total disability (TTD), when the employee can’t work at all while healing.
|Wages while an employee heals from injury||110% of usual wages|
|Permanent disability, which can be:
Permanent partial disability (PPD), when the employee has a permanent disability but can still do some work. Permanent total disability (PTD), when the employee has a permanent disability that prevents them from working at all.
A permanent disability designation generally occurs after an employee is released from treatment.
|Wages if employee can no longer work||100% of former wages|
|Death benefit (burial)||If an employee dies due to the incident||Up to $10,000 for burial expenses.
Wage replacement benefits depend on the surviving family:
Employers who do not comply with Tennessee workers’ comp laws can be subject to a fine.
The amount of the fine depends on how much a policy would have cost based on the state’s analysis of your risk. It may also depend on how long the business went without coverage, and it could be higher for certain industries, such as construction.
Workers’ compensation costs vary across industries. Factors that influence price include:
The best way to determine the insurance rate for your business is to get a free instant quote from NEXT.
Although many businesses are required by law to have workers’ comp insurance, some are eligible for a Tennessee workers’ compensation exemption. This segment includes sole proprietors, partners in a business and members of an LLC.
While workers’ compensation insurance may not be mandatory for everyone, without it medical expenses and the cost of lost wages due to a workplace injury would need to be paid out of pocket.
NEXT strives to resolve every claim quickly. Learn more about our claims process and how our claims advocates will work with you if a workplace injury impacts your business.
General liability insurance protects your business from common mistakes or accidents, such as customer injury or damages to someone’s property.
Commercial auto insurance covers your business in case of accidents, injuries, or property damage while driving for business purposes.
Commercial property insurance can provide financial help if your business structures, goods, gear or inventory are damaged or destroyed by a covered event.
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